FAC Explorer

Finding 1182519 (2025-001)

Material Weakness Repeat Finding
Requirement
L
Questioned Costs
-
Year
2025
Accepted
2026-03-24
Audit: 393927
Organization: Kewanee Community Unit School District No. 229 (IL)
Auditor: GORENZ AND ASSOCIATES LTD

AI Summary

  • Core Issue: One person is handling both preparation and submission of monthly reimbursement claims, lacking independent review.
  • Impacted Requirements: This violates 2 CFR 200.303 on internal controls, risking inaccurate meal claims and potential reimbursement errors.
  • Recommended Follow-Up: Establish a segregation of duties by having a second person review and approve claims, documented with signatures or electronic logs.

Finding Text

Criteria or Specific Requirement: Per 2 CFR 200.303 - Internal Controls and the OMB Compliance Supplement: Child Nutrition Cluster, Reporting - The District is required to have internal controls, including segregation of duties, over reporting of monthly reimbursement claims. Conditon: The same individual is responsible for preparing and submitting monthly reimbursement claims for the Child Nutrition Program without an independent review or approval prior to submission. Questioned Costs: This condition resulted in no identified questioned costs. Context: Currently one individual is responsible for preparing and submitting the monthly reimbursement claims. Effect: Meal claims could be submitted to the Illinois State Board of Education that do not accurately reflect the number of meals served. Consequently, the District could be over- or under-reimbursed by this grant program. Cause: Absense of formal internal control procedures resulted in one person performing all reporting functions. Recommendation: Implement segregation of duties by requiring one person to prepare the monthly claim and a second person (e.g., supervisor) to review and approve the claim before submission. The review should be supported with signatures or electronic approval logs. Management's response: A corrective action plan will be developed and implemented. A secondary review of the meal claim to the supporting documents will be performed before the meal claim is submitted.

Corrective Action Plan

Condition - The same individual is responsible for preparing and submitting monthly reimbursement claims for the Child Nutrition Program without an independent review or approval prior to submission. Plan - A second person person (business manager) compares the meal counts in the claim to: the Skyward daily meal count reports, monthly participation summary, eligibility rosters (free, reduced, paid) and USDA reimursement rates. The reviewer will then sign and date a reconciliation sheet before submission. Anticipated Date of Completion: December 7, 2025; Name of Contact Person - Dan Nolan, Business Manager; Management Response - The corrective action plan was discussed with the employee responsible for filing the claim, the business manager, and the superintendent. After discussion, the plan was approved by the superintendent.

Categories

Internal Control / Segregation of Duties Cash Management Reporting School Nutrition Programs

Other Findings in this Audit

  • 1182513 2025-001
    Material Weakness Repeat
  • 1182514 2025-001
    Material Weakness Repeat
  • 1182515 2025-001
    Material Weakness Repeat
  • 1182516 2025-001
    Material Weakness Repeat
  • 1182517 2025-001
    Material Weakness Repeat
  • 1182518 2025-001
    Material Weakness Repeat

Programs in Audit

ALN Program Name Expenditures
10.553 SCHOOL BREAKFAST PROGRAM $263,471
84.027 SPECIAL EDUCATION GRANTS TO STATES $153,300
84.367 SUPPORTING EFFECTIVE INSTRUCTION STATE GRANTS (FORMERLY IMPROVING TEACHER QUALITY STATE GRANTS) $119,413
84.358 RURAL EDUCATION $67,914
93.778 MEDICAL ASSISTANCE PROGRAM $56,966
84.010 TITLE I GRANTS TO LOCAL EDUCATIONAL AGENCIES $40,215
84.425 EDUCATION STABILIZATION FUND $27,431
84.173 SPECIAL EDUCATION PRESCHOOL GRANTS $26,140
84.365 ENGLISH LANGUAGE ACQUISITION STATE GRANTS $14,130
10.559 SUMMER FOOD SERVICE PROGRAM FOR CHILDREN $6,202
10.185 LOCAL FOOD FOR SCHOOLS COOPERATIVE AGREEMENT PROGRAM $3,651
10.555 NATIONAL SCHOOL LUNCH PROGRAM $3,217
84.424 STUDENT SUPPORT AND ACADEMIC ENRICHMENT PROGRAM $72